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Winter 2002 Newsletter

Putting Off Has Finally Paid Off!

Rates are down again, prices are stable and your home’s equity has never been worth more. Now’s the time to use it! The Credit Union is now offering Home Equity loans at unbelievable rates:

5.9% APR for up to 4 years 6.4% APR for up to 6 years

If you’ve been thinking about doing any of these things, NOW is the time to make your move, while rates are this low:

• Upgrade with landscaping, deck or dormer. • Refurnish living room, bedroom, family room. • Replace worn windows, paint, roofing or siding. • Renovate for a home office. • Remodel kitchen, bath, family room or den. • Refinance at a lower rate a current loan held elsewhere. • Modernize with a new PC, TV or appliance. • Pay tuition, room and board. • Pay off bills. • Pay down on a vacation or retirement home. • Finance or refinance your new vehicle purchase. • Deduct your loan interest from taxes (consult your tax advisor). Call the Credit Union today for information on rates and terms.

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IRA Changes for 2002

Beginning in the 2002 tax year, contribution limits have increased for Traditional and Roth Individual Retirement Accounts (IRAs). Single filers will be able to contribute up to $3,000 (was $2,000) of earned income and $6,000 (was $4,000) for married couples filing jointly. In 2005, the contribution limits of earned income will be $4,000 for single filers and $8,000 for married couples filing jointly.

Also for 2002, contributors over age 50 will be permitted to make catch-up contributions to Traditional and Roth IRAs. The maximum annual catch-up contributions are $500 for tax years 2002-2005 and $1,000 for 2006.

According to the most recent study by the Investment Company Institute, about 42 percent of Americans have IRAs.

You still have until April 15th to make deposits for contributions to your IRA for 2001. Get those deposits in as soon as possible.

If you have IRA certificates in other institutions that are maturing in 2002, we would like you to consider transferring those funds to an IRA at your Credit Union. If you have any questions on how to do this, contact your Credit Union office. We can arrange to transfer the funds from the bank to your Credit Union. We are sure you will find the Credit Union rates competitive or higher than other institutions.

You can also make rollovers to your IRA. The Credit Union offers both Traditional IRAs and Roth IRAs. IRAs are still an excellent way to defer valuable income until you retire.